Form 1040X – A Band-Aid for Incorrect Form 1040.

Form 1040X – A Band-Aid for Incorrect Form 1040.

Last minute tax filing stress, lack of information or plain oversight causes taxpayers to flounder on their Form 1040. But it’s okay to make mistakes, provided you correct them in time, within 3 years, in this case.

IRS gives you a chance to correct your tax filing mistakes on Form 1040X. Form 1040X will be your new tax return. It can be used to

·         Correct forms 1040, 1040A, 1040EZ, 1040NR, or 1040NR-EZ.

·         Make certain elections after the prescribed deadline.

·         Change amounts previously adjusted by the IRS.

·         Make a claim for a carryback due to loss or unused credit.

Explain your mistakes:

The IRS needs to know why you are filing Form 1040X. The possible answers could be you received another W-2 after filing the return, forgot to claim child tax credit, forgot to claim a tuition and fees deduction, changed your filing status, did not add sales tax on your new car etc. Part III of Form 1040X gives you the chance to explain your mistake.

How to file:

All schedules and forms should be attached to Form 1040X in the order of the “attachment sequence no.” shown in the upper right corner of the schedule or form. IF there are supporting documents, they should be arranged in the same order as they were in the last return.

If you owe tax, enclose your check or money order in the envelope with the amended return.

Amended Tax returns cannot be e-filed. They have to be mailed in. If you are filing Form 1040X:

1.       In response to IRS notice, mail it to the address shown in the notice.

2.       Received reimbursement for a hurricane-related loss, mail it to Department of the Treasury, Internal Revenue Service Center Austin TX 73301-0255.

3.       With Form 1040NR or 1040NR-EZ, mail it to Department of the Treasury, Internal Revenue Service Center Austin TX 73301-0215.

Fact:

In 2010, the reported national average of time burden was 7 hrs, and cost was $100 per 1040X taxpayer.